Morgan and Glazer want another loan from the city, this time for $2 million, for their Midtown Tower project! Haven't we already given them plenty?

In the 1970s, pornographic film “actress” Andrea True produced a string of disco hits.

One was “What’s Your Name, What’s Your Number.” Another was “New York, New York, You keep Me Dancin’.”

Her most famous hit was “More, More, More.”

It had great instumentals, a good beat you could dance to, and the few lyrics were somewhat suggestive.

Compared to what some local radio stations choose to air nowadays, especially to minors, “More, More, More” seems almost wholesome.

Fast forward to Rochester, 2013.

Developers Robert Morgan and Larry Glazer bought Midtown Tower and an adjacent parking lot for two bucks.

They promptly received nearly $19 million in loans, grants and tax breaks for ( what they estimated) was a $54 million project. More than a third of the estimated cost.

In short, the taxpayers of the City of Rochester and the County of Monroe became unwilling shareholders of a project from which we will not receive any dividends.

Now Morgan and Glazer want Citygov to “loan” them an addditional $2 million!

“More, More, More!”

Apparently, Morgan and Glazer “underestimated” the costs of renovating the Tower, although they will very “graciously” cover an additional $2.5 million in costs themselves!

How good of them!

Hasn’t Citygov given them enough of our money and credit already?

City Council will probably vote on this matter at their regular meeting on October 15. And they will probably unanimously approve it, as is their custom.

Rochester’s City Council has long ceased to be a legislative body, merely becoming a rubber stamp for whoever occupies the mayoral throne. That saves them from the ardors of mental exertion, since this is, after all, only a part-time job for them.

But wait, there’s more!

“More, More, More!”

The D&C reported that Morgan and Glazer wish to buy the city-owned pavilion on South Clinton Avenue.

Glazer already owns the Xerox Tower downtown.

According to the D&C: “Richards has proposed selling the structure, valued at $200,000, for a reduced price of $50,000. The difference is the estimated cost of removing the escalators, which are high-maintenance. The sale price could be reduced further given recently discovered roof and water damage, Richards said in a memo to Council.”

Midtown Tower: Alex White and Lisa Jacques are not giving into its illegal sale without a fight!

Last week, Rochester’s City Council approved the sale of Midtown Tower to developers Dave Morgan of Morgan Management and Larry Glazer of Buckingham Properties.

The price was $2.00, for prime downtown real estate.

Coincidentally, the purchasers contributed $5,000 to Mayor Tom Richards’ political warchest in 2011.

Just coincidence, of course.

Also approved were city loans and grants to the developers of nearly $12 million, as well as the usual PILOT ( Payment In Lieu Of Taxes ) deals, whereby the developers will pay far less than the assessed taxable value of the property. We mere mortals will be picking up their tab.

That night, Green Party candidate for mayor Alex White and City Council-at-large hopeful Lisa Jacques pointed out some “irregularities” with the sale: it violated certain clauses in Rochester’s City Charter.

Today, Alex White and Lisa Jacques filed a complaint with the state Attorney General’s office that the sale was illegal.

According to the D&C, Alex and Lisa allege that the city did not follow its own legal process that, at a minimum, would have required that the tower be sold at auction.

The D&C further stated that “unraveling the legal process requires looking at both city and state code. Midtown Tower, while city owned, is in an urban renewal district. City law sets out various provisions for ensuring the property is sold for its full value. However, the city points to state law that takes precedent for an urban renewal property and allows the city to skip a public auction or sealed bid process.”

“The state provisions only require that the price be published in advance, and that the buyer be designated as qualified and eligible. Both were done in this case.”

By White’s reading, however, the city law should apply: “We feel the city is not acting appropriately. … The problem is not with the building. The problem is the process that we followed did not get the taxpayers the money they were owed.”

The fact that developers and big businessmen routinely contribute to political campaigns, hoping for a quid pro quo, as was evident here, was not mentioned.

Perhaps because those regular events are seen as “business as usual” in Citygov.

What is to be gained by Alex and Lisa’s complaint?

Well, Alex is hoping the state forces the city to send the property to auction. Alex and Lisa also plan to file a complaint with the city’s Office of Public Integrity.

In short, they plan to air out Citygov’s dirty laundry during this election year!

Will it be successful?

Probably not. Too many people have a vested interest in maintaining the status quo in Citygov and they way it conducts business. Especially those wealthy developers and businessmen who contribute so generously to political campaigns. They wouldn’t do it if they weren’t given some consideration in the future!

There is some bitter truth in the old saying that we get the best politicians money can buy.

Unfortunately, when they sell their own souls to the devil, they sell ours along with theirs.

Which is why we ought to show some gratitude to Alex White and Lisa Jacques, whether we like their politics or not. They, at least, are standing up for the “little man:” the small business men, the small homeowners, the working-class taxpayers whom the entrenched forces in Citygov ( and governments everywhere ) ride roughshod over.

Rochester Mayor Tom Richards received a campaign contribution of $5,000 in 2011 from Buckingham Properties, which bought Midtown Tower and an adjacent parking lot tonight for $2.00!

Well, two of them, anyway.

Tonight, Rochester’s long-running black comedy known as Citygov authorized the sale of Midtown Tower and an adjacent parking lot for two dollars, making it clear that downtown real estate is, in their eyes, worthless.

The purchaser was Larry Glazer of Buckingham Properties, a source of major campaign contributions to the current City Administration.

In return for the whole two bucks, Buckingham Properties will be getting $6.7 million in a loan from Rochester at 1% interest, as well as a state grant for $5.2 million. They will also be property-tax exempt for twenty years.

This action is a slap in the faces of hard working Rochester residents who bought their own homes at market value, maintain them and pay property taxes on them with no help from Citygov.

Ordinarily, these kinds of shenanigans are usual in Citygov, and pass with next to nobody knowing about it. Until tonight.

Rochester entrepreneur Lisa Jacques, owner of “Park Avenue Pets” and a candidate for a City Council-At-Large seat, alerted people to what Citygov was attempting to pull off tonight. Ms. Jacques had her own ideas about Midtown Tower and the adjacent parking lot: to get a group of citizens to purchase the building themselves for $100,000 and use the grant and loan money to develop the properties.

They were there tonight, with the 10% on hand as required at any auction.

And Green Party candidate for mayor Alex White was there to lead these concerned citizens into the fray during the public hearing about the matter.

Firstly, Alex pointed out to the City Council that their actions to sell the properties for $2.00 were in violation of City Code.

Section 21-4, Sale of city-owned real property, reads: Real property owned by the City which has been acquired through tax foreclosure proceedings or by other means and is no longer needed for municipal purposes may be sold by the Director of Real Estate, upon approval by City Council, through any method authorized by statute, local law or ordinance.

Alex stated that tonight’s proceedings did NOT meet with that.

Furthermore, Section 21-5, Public auction sales, reads: All sales of City-owned real property at public auction shall be made by the Director of Real Estate or his or her representative after notice of the sale has been published at least once in an official newspaper of the City, subject to the approval by City Council of the sale price and purchaser.

There follows a set of terms and conditions.

Alex correctly pointed out that NO such notice of sale was published anywhere. This action was another violation of the City Code.

What it really boils down to is that Citygov decided to have a closed sale to a campaign contributer, which was what the code was written to prevent.

It is sort of what the Democrats complain about concerning the Navitech deal. But, such things are always different when it’s your own party doing it!

City Council President, the Honorable Lovely A. Warren, Esquire, also a candidate for mayor, expressed her concerns about Introductory Item No. 282: Authorizing The Sale And Lease Of Parcels, Parking Rights, Easements And Additional Rights To Further The Midtown Urban Renewal Plan. Ms. Warren stated that she would vote against it.

Richards stated that the codes did not apply to urban renewal projects, and that THIS project was different from Paetec.

Unfortunately, for Richards, Section 21-13. Sale of Rochester Urban Renewal Agency property states: Rochester Urban Renewal property shall be sold in accordance with New York State law. The sale must be approved by the Rochester Urban Renewal Agency, and its action affirmed by City Council. The procedures for submission and selection of development properties shall be the same as those established for the disposition of City-owned real estate.

So, where’s the difference?

What it boils down to is that Rochester’s City Council approved the sale of prime downtown real estate for $2.00 to one of Tom Richards’ campaign contributers, ignoring an alternative bid of $100,000 by private citizens who were NOT major campaign contributers. They also violated the City Code by doing so.

Citygov has no money to rehab thousands of deserted homes that blight our city, but it DOES have the wherewithal to make a $6.7 million loan at 1% interest to a major local developer!

And it is those deals involving payment in lieu of taxes, of which Citygov has become so fond, that are ruining our tax base.

Meanwhile, those of we “little people” who own our homes will be paying our taxes and increased fees, fearing next years proposed budget featuring cuts in services and increased taxes.

On Tuesday, July 16, Rochester’s City Council will ( undoubtedly ) unanimously approve the sale of Midtown Tower and an adjacent parking lot to a huge campaign contributor for two dollars.

This will be undertaken under the scam of “downtown redevelopment.”

The buyer (Larry Glazer of Buckingham Properties) will receive 11.9 million dollars of taxpayer money to develop the tower.

Wouldn’t you like to own the tower and parking lot and get 11.9 million dollars to develop it? (5.2 Million dollars in state grant money and 6.7 million dollars in city loan money at 1% interest.)

The tower will be “property tax-free” for twenty years.

All “details” are available on City Council’s website under the agenda for the July 16 meeting at 7:30 PM.

According to City Council-At-Large candidate Lisa Jacques, “This deal either represents total corruption by our city leaders, or our elected officials truly believe that downtown properties are worthless. Either belief is unacceptable.”

Well, actually, it seems to be a combination of both.

Deals like this continue to ruin our tax base, providing a quid pro quo to wealthy businessmen who contribute heavily to maintaining the status quo in Citygov.

And by cheapening the value of prime downtown real estate, it is difficult ( if not impossible ) to attract legitimate business investment into Rochester.

After all, if Citygov is giving everything away for hefty campaign contributions…

For our elected officials and their expensive hangers-on, this is sufficient unto the day: “worthless” property being redeveloped at the taxpayers’ expense!

Ms. Jacques DOES have an interesting alternative: that twenty or so concerned citizens show up at City Council’s Tuesday night meeting each bearing $5,000 to purchase Midtown Tower and the adjacent parking lot.

She does go on to say that a “citizen-owned” Midtown Tower “would be a lot of fun!”

At least it would be something different from the “business as usual” that goes on in Citygov!

Just as an aside: isn’t it interesting that the so-called “Progressive Democrats” who comprise Citygov attempt to placate the masses by saying that “corporations AREN’T people,” then promptly turn 180 degrees where campaign contributions or other little deals are involved?

Since Paetec isn’t interested in it anymore, somehow the city has received two “offers” for rehabbing Midtown Tower: one for residential units, another for commercial use. Nothing is firm about either of those. And what’s obvious is that the proposed developers don’t have any money of their own. If they did, they could have already started on it. They’re probably hoping that City Hall is panicking enough to make them an offer to get them the money to go ahead with Midtown Tower’s redevelopment.

It’s also odd that they have waited so long, until the plans for its demolition have almost been finalized.

Contributors

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Rich Gardner has been writing about the history, culture and waterways of Upstate New York for years. His articles have appeared in U.S. and Canadian publications, and one book, Learning to Walk. He is an alumnus of Brighton High School and SUNY Geneseo. He operates Upstate Resume & Writing Service in Brighton and recently moved to Corn Hill, where he is already involved in community projects. "I enjoy the 'Aha!' moments of learning new things, conceptual and literal. City living is a great teacher."

Ken Warner grew up in Brockport and first experienced Rochester as a messenger boy for a law firm in Midtown Tower. He recently moved downtown into a loft on the 13th floor of the Temple Building with a view of the Liberty Poll and works in the Powers Building overlooking Rochester’s four corners as Executive Director for UNICON, an organization devoted to bringing economic development to the community. He hopes to use his Rochester Blog to share his observations from these unique views of downtown.